Lightbulb Moments how & when

thecornflake

My original one was about 18 months ago, when I bought a book on Amazon called 'The complete cheapskate' by Mary Hunt. Although aimed at Americans the theory is the same and after reading about the snowball effect it opened my eyes to how bad minimum payments can be! plus for the first time I looked at what I owed and how much over budget we were every month.

I slipped for a while again and then recently found this forum and decided to go at it again. Last chance really, so I need to get it sorted. Every 6 months or so the missed payments really pile up and I have to do some drastic work to get it sorted. Last time it was a secured loan taking us right up to our equity limit.

I'm hanging on the edge of the clff at the moment, in the middle of trying to sell our house and move, two months behind on the mortgage and loads of extra bills coming out of nowhere (broken shower etc etc).

If i can clear the overdue stuff we'll be just under budget thanks mostly to the savings I've found out about from Martin's articles and the threads on this forum.

Feeling positive at the moment, but I'll be a lot happier once the moving is over and done with!

dinkylou

Mine came on full blast when I had a look at the snowball calculator.

When I realised that I would be in debt (mostly student loan) until I was 34 (now 25) and I would be wasting £1000's in interest, the thought made me feel sick.

I always thought that at some point I'd save enough to travel for a while and when I realised that this wouldn't really be possible for at least 10 years(!!) I started to make a plan.

Little goals are helping me get there, but I will. (and alot sooner than most of my peers!)

Warriorsith

My moment was a couple of years ago, when I was in a decent position at work and the wages was good too, then the stress of the position got the better off me and I had to demote myself after 6 months of hell. Unfortunately I had to take a pay cut and then realised I was living beyond my means, the companies I owed money too weren't impressed and thats when my finances got the better of me, but now I've turned it around and am well on the way to be debt free by early 2008.

I am looking forward to that date, as I plan never to get myself in to debt again (with the exception of possibly obtaining a mortgage) and to learn to wait and be patient to buy items that I really need.

:T

Thriftylady

scw1 wrote:

Mine was working out when to start my maternity leave!

me too !!! had sleepless nights when I found out I was pregnant, and then I sat down and thought about it and realised that we have a good income between us, so how come we never have anything to show for it, and it all went from there! and inside just a couple of months I can honestly say that I have transformed my attitude to money...its amazing

ally1974

My lightbulb flickered for a short while several months ago when I worked out that I was in debt to the tune of £33k (including student loans, bank loan, credits & overdraft). I wasn't too worried though, thought 'I'm intelligent, got a good job, I'll pay it off easily'. But...
Reality bites and I know I won't pay it off without a great deal of blood, sweat and tears, and now I've found this website, with the encouragement you all give each other, I don't feel alone in my struggle. I've already started the storecupboard challenge and discovered I've got some pretty nice meals for the next two weeks so at least I won't starve! And I think I might just make it to debt-free heaven before I'm forty (which is the age I worked out that I'd be there, although they do say life begins at forty, so whoohoo!)

scholt

when I paid £173 interest on one credit card in one month. "Hang on - this is £173" I said to myself. yes it really was that funadmental

madmalteaser

New Year 2006. I was thoroughly depressed about how I hadn't been able to buy anyone any Christmas presents, went out to buy food and all my credit cards were refused. The most humiliating moment I've ever experienced. But it was enough to make me wake up and realise how deeply I'd got myself into debt.

When I finally sat down and started looking at it all, I realised all my wages was going on to paying minimum payments and leaving me with absolutely nothing for food, petrol etc. Jan to about April was tough, but I'm slowly getting there. Got myself away from the dreaded overdraft limit (although still not out of it completely yet) and the minimum payments on my cc's have dropped as I've been paying larger amounts on the cards (with a little help from my OH).

I'll probably be in debt for a while yet, but it's nice to know I'm finally getting it under control and haven't used a single credit now for over 6 months!

vyvyan_2

Add up your monthly interest on all your debts (unless they are all 0% of course)
and multiply by 12 for the year - that is sure to make you go :eek:

Ali-OK

Mine was when I could no longer balance my job with time with DS (due to being based much further away from home), so downgraded to my old role and of course salary dropped, by a massive £750 per month take home.

Quality of life, time with DS and health have all improved, and debt is going down. Can't ask for much more at this moment in time.

uberzoldat

Mine came when I maxxed out my 7 credit cards trying to cover my monthly outgoings and had to finally admit I was in trouble, and ask my parents for help.